Sterlite Technologies drops after new order win

Sterlite Technologies drops after new order win

Sterlite Technologies declined 2.96% to Rs 198.05 at 11:10 IST on BSE, despite bagging an order worth $17.5 million from Ethiopian Electric Power Corporation, Ethiopia for manufacture and supply of AAAC power transmission conductors.

The company made this announcement during trading hours today, 11 February 2008.

Meanwhile, BSE Sensex was down 324.06 points or 1.86% to 17,140.83 as poor debut of Reliance Power, which had come out with India's biggest IPO, last month, hit market sentiment.

On BSE, 22,554 shares were traded in the counter. The scrip had an average daily volume of 1.67 lakh shares in the past one quarter. The stock hit a high of Rs 208.80 and a low of Rs 198 so far during the day. The stock had a 52-week high of Rs 381.40 on 12 December 2007 and a 52-week low of Rs 145 on 22 January 2008.

The mid-cap scrip had underperformed the market over the past one month till 8 February 2008, declining 33.99% compared to the Sensex’s decline of 15.15%. It had also underperformed the market in the past one quarter, declining 27.51% compared to Sensex’s decline of 7.63%.

The company’s current equity is Rs 32.23 crore. Face value per share is Rs 5. The current price of Rs 198.05 discounts its Q3 December 2007 annualized EPS of Rs 16.38, by a PE multiple of 12.09.

Sterlite will be the sole manufacturer and supplier for over 17,000 kilometers (kms) of all aluminium alloy conductors (AAAC) that would be installed in the 4,000 kms route length of the accelerated electrification programme (AEP) project being executed under World Bank funding in Ethiopia.

Sterlite commands a market share to about 14% in Africa & the Middle East with its power transmission conductor products sold in 32 countries across the region to reputed turnkey, utilities and infrastructure companies.

On 8 January 2008, Sterlite Technologies received a contract worth Rs 140 crore from Rajasthan Rajya Vidyut Prasaran Nigam, India for manufacture and supply of ACSR moose power transmission conductors. On 6 November 2007, the company bagged an order worth Rs 143 crore order from BSNL for supply of copper telecom cables.

Sterlite Technologies’ net profit rose 105.1% to Rs 26.40 crore on 59.9% growth in net sales to Rs 502.03 crore in Q3 December 2007 over Q3 December 2006.

Sterlite Technologies is engaged in manufacturing and marketing optical networking products including optical fibre and optical fibre cables. The optical fiber cable plants produce standard and customized cables.